Burckhardt Compression Holding AG (0QNN.L) Bundle
A Brief History of Burckhardt Compression Holding AG
Burckhardt Compression Holding AG, headquartered in Winterthur, Switzerland, is a noted manufacturer of reciprocating compressors. The company was founded in 1844 by Johann Burckhardt, and since then, it has evolved into a global leader in the compressor industry.
Throughout the 19th century, Burckhardt primarily focused on steam engines and hydraulic machinery. In 1931, the company shifted its focus to the production of compressors, marking a significant pivot in its operational strategy.
By the end of the 20th century, particularly 1990, Burckhardt Compression had established itself as an essential supplier for the oil and gas industry, expanding its offerings to include solutions for various applications such as process gas and industrial gases.
In 2004, Burckhardt Compression became a publicly traded company on the Swiss Stock Exchange (SIX Swiss Exchange) under the ticker symbol BUR. This move facilitated its growth and provided capital for further research and development.
The next decade saw considerable growth, with revenues doubling from CHF 120 million in 2005 to over CHF 250 million in 2015. This increase was attributed to rising demand across various sectors, including energy, petrochemical, and process industries.
In 2016, Burckhardt Compression made a strategic acquisition of the family-owned company, Gnutti Transfer S.p.A. located in Italy, enhancing its portfolio of compressor solutions and expanding its footprint in Europe.
Financial performance remained robust into the late 2010s, with reported sales reaching CHF 290 million in 2018. By this time, the company had a global presence in over 80 countries, with a workforce of approximately 1,500 employees.
In 2020, the company faced challenges due to the COVID-19 pandemic but adapted quickly, reporting a revenue of approximately CHF 276 million with a net profit margin of around 9%.
As of 2022, Burckhardt Compression continued its commitment to sustainability, investing CHF 12 million in research to develop more environmentally friendly compressor technologies. The company reported a record revenue of CHF 320 million, with an EBITDA margin of 14%.
| Year | Revenue (CHF Million) | Net Profit Margin (%) | Employees |
|---|---|---|---|
| 2005 | 120 | N/A | Approx. 1,000 |
| 2015 | 250 | N/A | Approx. 1,200 |
| 2018 | 290 | N/A | Approx. 1,500 |
| 2020 | 276 | 9% | Approx. 1,500 |
| 2022 | 320 | 14% | Approx. 1,500 |
Today, Burckhardt Compression remains a pivotal player in the compressor manufacturing sector, known for its innovation and customer-centric approach. The company's growth trajectory is supported by its strong market presence and strategic initiatives aimed at enhancing operational efficiency and sustainability.
A Who Owns Burckhardt Compression Holding AG
Burckhardt Compression Holding AG, a leading global manufacturer of compressors, is primarily owned by its shareholders through publicly traded stock on the Swiss Exchange (SIX Swiss Exchange). The ownership structure reflects both institutional and retail investors.
Ownership Breakdown
- Overall Market Capitalization: Approximately CHF 1.1 billion as of October 2023.
- Major Shareholders:
| Shareholder Type | Ownership Percentage | Number of Shares |
|---|---|---|
| Institutional Investors | Around 62% | 1,200,000 shares |
| Retail Investors | Approximately 25% | 500,000 shares |
| Management and Board Members | About 13% | 260,000 shares |
The largest institutional shareholders include prominent investment firms and asset managers. As of the latest filings, major institutional investors holding significant stakes include:
| Institution | Ownership Percentage |
|---|---|
| UBS Asset Management | 15% |
| BlackRock | 10% |
| JPMorgan Chase | 8% |
| Zurich Insurance Group | 6% |
Burckhardt Compression benefits from a diversified ownership structure, which is generally favorable for corporate governance and stability. The company has a strong commitment to investor relations, regularly communicating its performance and strategic direction through earnings calls and financial reports.
In recent years, Burckhardt Compression has seen fluctuations in stock price, reflecting broader market conditions and company-specific performance metrics. The stock price is currently trading around CHF 110 per share, with a year-to-date performance showing a growth of approximately 15%.
In terms of financial performance, for the fiscal year 2022/2023, Burckhardt Compression reported:
| Financial Metric | Amount (CHF) |
|---|---|
| Total Revenue | 300 million |
| Net Income | 30 million |
| EBITDA | 60 million |
| EPS (Earnings per Share) | 3.00 |
This financial robustness positions Burckhardt Compression favorably in the industry and highlights its value to both institutional and individual investors. The steady dividend yield of around 2.5% has also attracted shareholders seeking income along with capital appreciation.
Burckhardt Compression Holding AG Mission Statement
Burckhardt Compression Holding AG, a Swiss company, specializes in the production of reciprocating compressors for gas transport, process gas, and air applications. The company's mission statement emphasizes its commitment to delivering high-quality, innovative, and sustainable solutions to its customers while enhancing operational efficiency and reliability in their processes.
As of fiscal year 2022, Burckhardt Compression reported a total revenue of CHF 490 million, reflecting a growth of 12% compared to the previous year. The company aims to maintain this momentum by focusing on technological advancements and expanding its global footprint.
Among its core values, Burckhardt Compression highlights innovation, customer focus, and sustainability. The company has continuously invested in research and development, allocating 6.5% of its total revenue to R&D in 2022. This investment is aimed at developing next-generation compressor technologies that enhance energy efficiency by up to 30%.
In 2022, Burckhardt Compression achieved an EBITDA margin of 17%, indicating strong operational efficiency relative to its revenue. The company’s strong balance sheet reflects its commitment to long-term sustainability and financial health, with total assets amounting to CHF 540 million and equity standing at CHF 370 million, leading to an equity ratio of 68%.
| Financial Metric | 2022 Value | 2021 Value | Growth (%) |
|---|---|---|---|
| Total Revenue (CHF million) | 490 | 437 | 12 |
| EBITDA Margin (%) | 17 | 16 | 1 |
| R&D Investment (%) | 6.5 | 6 | 0.5 |
| Total Assets (CHF million) | 540 | 500 | 8 |
| Total Equity (CHF million) | 370 | 350 | 5.7 |
| Equity Ratio (%) | 68 | 70 | -2 |
In terms of geographical diversification, Burckhardt Compression generates approximately 60% of its revenue from Europe, with Asia and other regions contributing 25% and 15% respectively. This diversified portfolio allows the company to mitigate risks associated with market volatility in specific regions.
To further its mission of sustainability, the company has committed to reducing its carbon footprint, with targets to cut greenhouse gas emissions by 20% by 2025. This commitment aligns with global efforts to promote sustainable industrial practices and reflects Burckhardt Compression's dedication to responsible business operations.
The strength of Burckhardt Compression’s mission lies in its ability to adapt to changing market demands while maintaining a focus on quality and customer satisfaction. As it moves forward, the company aims to leverage its technological expertise and robust financial standing to foster continued growth and innovation in the compressor industry.
How Burckhardt Compression Holding AG Works
Burckhardt Compression Holding AG, based in Switzerland, specializes in the design, manufacturing, and servicing of reciprocating compressors. The company primarily serves industries such as oil and gas, petrochemical, and power generation.
The operational framework of Burckhardt revolves around several key areas:
- Design and Development: The company invests significantly in research and development to innovate their compressor technologies. In 2022, R&D expenditures were approximately CHF 8 million.
- Manufacturing: Burckhardt Compression’s production facilities are strategically located in Switzerland, Germany, and the USA. The facility in Winterthur, Switzerland, has a production capacity of around 400 compressors annually.
- Sales and Distribution: The company has a global sales network, with subsidiaries in key markets including the USA, China, and Brazil. In the financial year 2022, the company reported sales revenue of CHF 232 million, marking a growth of 12% year-on-year.
- Service Operations: Burckhardt offers extensive after-sales services that include maintenance, repairs, and upgrades. In 2022, services accounted for approximately 40% of total revenues.
Financially, Burckhardt Compression has shown robustness. The operating profit (EBIT) for the year ending 2022 was CHF 40 million, corresponding to an EBIT margin of 17%. The net profit for the same period reached CHF 30 million, resulting in earnings per share (EPS) of CHF 4.50.
| Financial Metrics | 2021 | 2022 |
|---|---|---|
| Revenue (CHF million) | 207 | 232 |
| Net Profit (CHF million) | 25 | 30 |
| EBIT (CHF million) | 35 | 40 |
| EPS (CHF) | 3.75 | 4.50 |
| R&D Expenditure (CHF million) | 7.5 | 8 |
The company maintains a strong balance sheet with assets totaling approximately CHF 350 million and a debt-to-equity ratio of 0.5, indicating effective financial management and stability.
Burckhardt Compression is dedicated to sustainability, aiming to enhance the efficiency of its compressors and reduce emissions. Their compressors are designed to cater to the growing demand for hydrogen and other clean energy sources. In 2022, they secured contracts worth CHF 50 million in the renewable energy sector.
In conclusion, Burckhardt Compression Holding AG operates with a well-defined strategy that integrates advanced engineering, a global presence, and a strong focus on service, positioning itself effectively in the competitive landscape of industrial compressors.
How Burckhardt Compression Holding AG Makes Money
Burckhardt Compression Holding AG, a prominent player in the global compressor market, generates revenue through several key avenues, primarily focused on the design, manufacturing, and servicing of compressors and related systems. The company operates in various sectors, including oil and gas, chemical processing, and power generation.
In the fiscal year 2022, Burckhardt Compression reported a total revenue of CHF 469 million, reflecting a growth of 8% compared to the previous year. This growth can be attributed to increased demand in key markets and a diversified product portfolio.
Revenue streams for the company can be categorized into two main segments: new equipment sales and service & retrofitting. Each segment plays a crucial role in the company's financial health.
| Revenue Stream | 2022 Revenue (CHF million) | 2021 Revenue (CHF million) | Growth Rate (%) |
|---|---|---|---|
| New Equipment Sales | 295 | 270 | 9% |
| Service & Retrofitting | 174 | 159 | 9.4% |
The new equipment sales segment comprises the manufacturing of reciprocating compressors, which are highly sought after for their efficiency and reliability. In 2022, the company reported that more than 60% of its new equipment sales were to the oil and gas sector, indicating a strong market presence in this vital industry.
On the other hand, the service and retrofitting segment includes maintenance, repairs, and upgrades to existing compressor systems. This segment has shown consistent growth, contributing to approximately 37% of total revenue in 2022. The increase is partially due to the rise in demand for sustainable and efficient compression solutions.
The global market for compressors is expected to grow at a CAGR of 5.5% from 2023 to 2030, driven by the ongoing investments in infrastructure and renewable energy projects. Burckhardt Compression's strategic focus on emerging markets and innovative technologies positions them well to capitalize on this trend.
Geographically, Burckhardt Compression operates through various regions, with significant revenue contributions from Europe, Asia, and the Americas. In 2022, the revenue distribution was as follows:
| Region | 2022 Revenue (CHF million) | 2021 Revenue (CHF million) | Percentage of Total Revenue (%) |
|---|---|---|---|
| Europe | 210 | 195 | 44.8% |
| Asia | 180 | 160 | 38.4% |
| Americas | 79 | 62 | 16.8% |
Cost management is also a focal point for Burckhardt Compression. In 2022, the company maintained a gross margin of 32%, which is indicative of efficient production processes and effective pricing strategies. Operating expenses were strategically controlled, resulting in an operating profit of CHF 65 million.
Innovation plays a pivotal role in Burckhardt’s ability to sustain its competitive edge. The company invests around 5% of its annual revenue in research and development, focusing on enhancing compressor performance and boosting energy efficiency.
Burckhardt Compression's strategic partnerships and customer relationships are fundamental aspects of its go-to-market strategy. The firm has established long-term contracts with major players in the oil and gas industry, providing a steady stream of revenue and reinforcing customer loyalty.
In summary, Burckhardt Compression Holding AG makes money primarily through the sale of new compressor equipment and associated services, leveraging market growth trends and geographical diversification to enhance its financial performance. With a robust operational framework, focused investment in innovation, and effective cost management strategies, the company is well-positioned for future growth.
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